Mexico
January 31, 2025
CRU Zinc: North American premium rises as Teck lowers output guidance
Written by Tom Rutland
On Jan. 18, Teck Resources announced that it expects its Trail smelter in Canada to produce 190,000 to 230,000 metric tons (mt) in 2025, down 10-25% from its 256,000 mt output in 2024. The company announced that the lower output was to maximize profitability and value amid the current tightness in zinc concentrate availability relative to available smelter capacity. With refined output expected to remain relatively flat elsewhere in North America, refined production from the region is anticipated to decline by 4.4% y/y in 2025.
However, there are also some downside risks to CRU’s North American refined zinc output forecast for 2025 due to the tight concentrate supplies and a record-low TC. Meanwhile, Trafigura’s Clarksville (125,000 mtpy) in the US could also potentially see a decline in output as the operation has historically been fed by the company’s Middle Tennessee mines; however, the mines have not been operating since late 2023, meaning the smelter could soon deplete its concentrate stocks.
